Caveat Emptor

ETF opportunities and risks One great thing about studying for the CFA is that you can tie the curriculum syllabus to real life examples and observe the motion in progress. I had a tendency to put in considerably more time and effort to studying certain topics like Real Estate (and REITS) , corporate finance, Equity investing and ETFs compared to the other topics combined.  As an enthusiast in ETF investing, I have significant holdings in STI ETF and is eager to gain knowledge and exposure to global ones. One key limitation about the CFA is that it is only good at explaining historical examples and is backward looking . Elaborate discussions about macroeconomic models and DCF will not be able to explain the implications of QE and negative interest rates, and the appropriate discount rates to apply. Howard Marks Latest <Mysterious> Memo explores the implications of negative I/R on risk seeking behavior, and inverted relationships whereby historical models may no longer pr...

DCA of STI ETF I have started my investment journey since June 2016 in the depths of the Singapore recession. Graduating at the onset of a recession is a calamitous time. Nonetheless, after I have built up sufficient savings to meet any immediate needs for the next 3-6 months, I started on DCA of STI ETF (ongoing) on a monthly basis and OCBC (discontinued since Apr 2017) since then. There had been many bloggers espousing on the merits of the STI ETF and equally vocal opponents criticising on its numerous limitations. On my personal front, I adopt a hybrid (passive  + active) approach towards my portfolio. My passive approach is to allocate fixed sum of my monthly income into DCA STI ETF.  My tactical approach whereby I actively screen and pick stocks. I will plant them in my watchlist and monitor them if they have dropped down to attractive valuation levels. I will set aside a war chest to capitalise on potential market dips / heavy correction / general optimism and pes...

Key considerations in China ETF Selection To continue off my previous post, I was researching on key considerations for ETF selection as I am interested in getting exposure to China market. I am working with the assumption that China market is difficult to navigate. Investing in China involves political risk (CCP social credit rating and key personnel risk) , potential shortcomings in financial disclosure (China Hustle), potential issue with investor protection rights (S-Chips repatriation issue) and growing pains (economic slowdown). Even though I am optimistic about the government's plan to clean up crime and misconduct in the long run, I am uncertain whether foreign investor rights will be sufficiently protected.   As such, as a know nothing investor, I will prefer a sufficiently diversified approach to manage these risks.  I am not familiar with the top performing active managed funds in China, and believe that the best approach is to simply buy and hold an...